Billy Timmins
Ceist:187 Mr. Timmins asked the Minister for Finance the position regarding the 2% Government levy on car, housing and insurance premiums; and if he will make a statement on the matter. [29115/01]
Written Answers. - Stamp Duty.
It is assumed that the Deputy is referring to the general 2% stamp duty charge, as the position regarding the insurance compensation fund levy, introduced following the collapse of the PMPA in 1983, was explained by the Minister of State at the Department of Enterprise, Trade and Employment, Deputy Noel Treacy, in response to a similar question from the Deputy on 9 October last.
I am informed by the Revenue Commissioners that the stamp duty 2% levy on non-life insurance premiums applies to most categories of non-life insurance business, the exceptions being reinsurance, voluntary health insurance, marine, aviation and transit insurance and export credit insurance. The insurance companies pay the levy en bloc to the Revenue Commissioners and, therefore, there is no breakdown of the total yield attributable to each chargeable category.
The levy was originally introduced in 1982 at a rate of 1% on chargeable non-life premiums. The rate was subsequently increased to 2% in 1993. The purpose of the levy is to broaden the stamp duty base, thereby raising additional revenue. The money raised from this stamp duty charge makes a significant contribution to tax revenue collected. The yield in 2000 was £44.86 million. I have no plans to abolish the charge.